Business CaseThe handling of general customer enquiries is creating a huge draw on resources within the GasEl Service Centre. In this assessment, working in groups you are required to prepare Bus
Proposed Strategy Overview Based on SWOT Analysis
GasEl is a well-respected company, covering both energy sectors of Gas and electricity. They have an excellent reputation which is known for their customer service and are increasing the number of clients on their books due to successful TV advertising campaigns. Management is astute enough to distinguish between costly and
revenue-generating activities. The service staff have a broad knowledge base, which will make it easier to depart from their old regional system to a new departmentalized management system.
There is healthy competition in the market, which has given rise to a willingness to switch suppliers. Their main body of clients are using Gas, so there is an opportunity for growing their electricity accounts by getting people to switch over. The recent investment in a new plant gives rise to the opportunity of expanding to overseas markets with excess capacity.
GasElhave the means to increase their sales by continuing to use TV and media campaigns to drive new business. Competition is high, but this can be embraced as a means to look at further cost-cutting initiatives such as refining their management and processing procedures, giving better value to the end user, or even looking at outsourcing their customer service department by using call centers.
From a “Weaknesses and Threats”, perspective there is disaster looming if these issues are not addressed. Main points are discussed from one to six. The old one-stop-shop system has to be thrown out, and a new method of management should be put in place. The service center has some critical activities, and the new system would be departmentalized around these key activities and supporting elements. They have to move into the 21st century and take advantage of paperless billing, digital payment processing and storage management. There is a real and present threat in compliance and Island economies, so due diligence and research into other market opportunities would be wise. If proper resources and systems are not put in place, the wheels will come off the wagon as they are experiencing a massive increase in calls. Finally, creating a bundled deal to consumers will provide value that will yield a number of benefits as detailed in point 7.
- Put new business structure in place
This is most important and standout point. Until GasEl moves away from their old regional model and one-stop shop system, they will continue to be inefficient in some areas. The new system and structure will be based on departmentalization of activities. A more suitable arrangement would be like this.
Departmentalization of staff within the new system would be relatively easy as all staff members are already familiar with all service procedures. Because of the new system, valuable human resources can be freed up from unprofitable and inefficient activities such as bill inquiries and placed in the more critical areas of their organization, which is presently being neglected. Key areas would be as follows
Direct all bill inquiries to the FAQ’s page
Place extra staff in the sales department to handle increase of new customers
Review and establish modern management system and protocol for corporate accounts
Standardisation of procedures and processes is necessary for relation to all units.
Establish appraisal and report mechanism for all departments
- Appraisal and Reporting
After the new units and structure have been established, it is imperative to have a proper reporting and appraisal mechanism in place to make sure each group is functioning at an optimum level. For each service procedure, the new ones put in place must meet standards. Regular reviews and analysis must be carried out to improve efficiency, monitor activity, and measure success.
- Introduce Web based facilities to service customers online
By providing relevant FAQ’s on their web page to deal with bill related inquiries substantial savings in time/workforce can be achieved. Presently between phone and email inquiries, a total of 33.79% of the total distribution of time is spent on these activities. This equates to 14.25 full time staff. The new system can be put in place by directing these calls through the IVR when a customer makes contact.
By providing an online facility for customers to view and pay bills will absorb significant resources within the Service Centre and represents a convenient way for customers to view and pay their bills independently, 24 hours a day, 7 days a week.
Conversion of Sales increased from customers calling the service center.
This is a critical area for the company, as they are now experiencing huge volumes of calls especially during peak periods. Presently using 2.05% workforce and only 4.86% of their time is just madness. They have spent considerably on their latest TV ad campaign and must operate this area appropriately to make those valuable conversions. Proper training, support and standardisation of sales procedures must be in place for both business and general accounts.
- Corporate customer accounts management improved
This is their most profitable sector and has recently been losing accounts due to poor customer service. This has been caused by general mismanagement. They already have a total of 8.2% of their staff engaged in this area taking 19.44% of
their time. Due to crisis management and lack of appraisal mechanisms, this sector has been neglected. The consequence has been a loss of critical accounts. By having a dedicated accounts manager and team in place with regular appraisals, this area should see immediate improvement.
- Arrears team put in place to deal with the backlog
Currently 35 million in arrears and only 2.56% of staff dedicated to this activity. This percentage needs to be increased in collaboration with an arrears management policy with monthly reviews.
- Bundled Gas & Electricity Value Deals
By creating a bundled Gas & Electricity Value deal for customers which must be paid up front, this will create a number of benefits which include: encourage new customers to buy into to the products; assist with the impact of austerity; give customers another reason to switch; lower the amount of customers in arrears, free up more time from staff to focus on items 4, 5 and 6 listed above.
ReferencesYüksel, İ., & Dagdeviren, M. (2007). Using the analytic network process (ANP) in a SWOT analysis–A case study for a textile firm. Information Sciences, 177(16), 3364-3382.
Zack, M. H. (1999). Developing a knowledge strategy. California management review, 41(3), 125-145.
